52-Week Low Alert: Trading today’s movement in ONESPAN INC. COMMON STOCK $OSPN

Quantchabot has detected a promising Covered Put trade opportunity for ONESPAN INC. COMMON STOCK (OSPN) for the 16-Sep-2022 expiration period. You can analyze the opportunity in depth over at the Quantcha Options Search Engine.

OSPN was recently trading at $10.62 and has an implied volatility of 62.67% for this period. Based on an analysis of the options available for OSPN expiring on 16-Sep-2022, there is a 34.18% likelihood that the underlying will close within the analyzed range of $8.57-$10.64 at expiration. In this scenario, the average linear return for the trade would be 17.02%.

52 week low: ONESPAN INC. COMMON STOCK recently reached a new 52-week low at $10.43. OSPN had traded in the range $10.48-$25.50 over the past year.

Trade approach: Reaching a new 52-week low is a bearish indicator, so this trade is designed to be profitable if OSPN maintains its current direction and does not revert back to pricing on the bullish side of $10.62 on 16-Sep-2022. If possible, the trade has been padded such that slight movement against the trade would still return a profit.

Upside potential: Using this bearish strategy, the trade would be profitable if ONESPAN INC. COMMON STOCK closes at or below $10.95 on 16-Sep-2022. Based on our risk-neutral analysis, there is a 55.23% likelihood of this return.

Downside risk: As with any options trade, there is a substantial downside risk where you may lose most or all of your investment.

To analyze this trade in depth, please visit the Quantcha Options Search Engine.